Burial expenses Insurance Overview
The natural law of man’s existence generally pointed out that man is faced with two unavoidable phenomena “Death” and “Life”. In this, it is believed that either of the two that man must have to die someday, but the date, time, month, or even year is uncertain.
It is on this ground that man’s desire to get any form of protection that could take care of his funeral expenses emerged since he is aware that a day must surely come when he will die. Having known that death is an unfortunate event whose occurrence is unpredictable in most cases has aroused man’s quest to get protected if it happens.
Death can happen when the deceased family is financially incapacitated and if death occurs at this point, the insurer (burial insurance companies) takes care of all the incurred bills during the funeral service of the insured.
The most important thing about insurance for burial expenses is that it helps in relieving the insured family of the huge cost they may face due to the unexpected passing away of their loved ones.
However, any form of protection, savings, or investment entered into by a man with the legal objective that at his death they should take care of all his funeral expenses in line with the agreement of the contract is not different from Burial expenses insurance.
What is Burial Expenses Insurance
The burial expenses otherwise known as final expenses or funeral insurance plan protects you and every member of your household against the risk of death cost. It is a pure life insurance cover that provides financial coverage for a policyholder and their loved ones in the happening of a loss to the family.
The existence is to provide whole life coverage to the policyholders, which are the principal, his children, parents and parents-in-law, and other immediate family allies.
For any life insured, there’s a particular amount due for each coverage which is determined by the insurance companies involved. Following the high cost of funerals, having a burial insurance policy can help relieve any costs your loved ones face due to your passing. The policy can be bought online or by telephone without waiting for an insurance-company doctor exam.
In fact, burial insurance does not require a medical exam at all to get. “Burial Expenses Insurance” often refers to the type of whole life insurance policy prepared to provide money for your funeral or burial of your relatives and other end-of-life final expenses. In the event of death, the sum assured becomes payable to the beneficiary or legal representative.
Should the policyholder die first, the benefit is payable to a nominated beneficiary and upon the death of the policyholder within the premium payment years of the policy, the spouse has the option to take over the premium payments within 6 months from the date of death of the policyholder
Burial insurance Premium Payment Procedure
Generally, Premiums are payable weekly or monthly. The premium is usually collected at the policy owner’s home or workplace that is office, and the premium is usually a small round number, such as $3 or $4 per week; the death benefit is whatever that premium will buy given the insured’s current age.
For Instance, a $3 per week premium might buy a $7,000 death benefit for a 35-year-old man or a $19,000 death benefit for a 10-year-old boy. However, premiums for burial insurance do not change, and this policy provides permanent coverage. Some of the costs covered by this insurance include funeral service, cemetery plot and headstone, casket, funeral procession, and other miscellaneous costs.
Also, in the event of death, the sum assured becomes payable to the beneficiary or legal representative. Should the policyholder die first, the benefit is payable to a nominated beneficiary and upon the death of the policyholder within the premium payment years of the policy, the spouse has the option to take over the premium payments within 6 months from the date of death of the policyholder. With a single premium, both the policyholder and the beneficiaries are fully covered. If death occurs and if the policyholder dies first, no further premium will be required from the spouse.
At what age am I due to acquiring burial insurance coverage?
In most countries of the world, the minimum entry age for the principal policyholder is 18 years while the maximum entry age is 60 years. For children, the minimum entry age is 15 years, and the maximum entry age is 25 years. The minimum entry and maximum entry age for parents are 33 and 60 years respectively.
Sometimes, coverage is typically available for those between the ages of 50 and 85 respectively. One of the benefits of funeral insurance is that it doesn’t require medical exams.
How much do I need to enter into burial expenses insurance?
Burial insurance is often considered one of the more affordable types of insurance coverage available, even for older applicants, due in part to its lower coverage amounts.
In terms of burial insurance cost, final expense life insurance rates start at just $54 a month with coverage amounts from $4,000 to $37,000 financial, and premiums can be paid monthly or annually depending on the insurance company involved.
What does a funeral insurance policy cover?
Burial expenses insurance or final expenses insurance is designed to cover the costs your loved ones will face in the event of your death, but there are no restrictions on how the payout can be used. Your beneficiaries might choose to use your burial insurance payout for:
a. Funeral arrangements, including viewing and service
b. Burial costs, including internment
c. Cremation costs and cleaning cost
d. Medical bills
e. Outstanding debt
f. Legal costs
e. funeral refreshment costs, casket, and many other expenses
Burial insurance is a type of whole life insurance policy coverage that takes good care of your funeral or final expenses when you die.